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Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach

Thesis (PhD (Agricultural Economics))--University of Pretoria, 2006.

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Other Authors: Mabugu, Ramos
Format: Thesis
Language:English
Published: University of Pretoria 2013
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access_status_str Open Access
author2 Mabugu, Ramos
author_browse Mabugu, Ramos
author_facet Mabugu, Ramos
collection Thesis
dc_rights_str_mv © 2008, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria
description Thesis (PhD (Agricultural Economics))--University of Pretoria, 2006.
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institution University of Pretoria (South Africa)
language English
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provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
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spelling oai:repository.up.ac.za:2263/31036 Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach Mabugu, Ramos nadeyemo@csir.co.za Hassan, Rashid M Adeyemo, Oyenike Olubukanla UCTD Translog cost function Nigeria Elasticity Energy Greenhouse gas (GHG) Econometrics Duality theory Substitution Thesis (PhD (Agricultural Economics))--University of Pretoria, 2006. This study uses time series econometric methods to estimate a translog cost function for different energy types (coal, gas, electricity and oil) in Nigeria. This is used to explore whether there are substitution possibilities among the different energy types and among the factors of production. The study also looks at the impact of technical change on energy mix in Nigeria. The purpose of the analysis is to aid in formulating energy policies and policies for carbon dioxide mitigation policy for Nigeria. The results indicate that the demands for fuels vary according to the type of industry with respect to their own prices. For example, demand is elastic in all the industries except fabricated metal (oil), chemicals (electricity, food and beverages (electricity), textile (coal and gas), wood (coal and gas), other manufacturing industries (oil and coal) and gas in the manufacturing industry as a whole. In terms of technical change, coal, oil and electricity have energy using bias in the industrial sector. This implies that production technology set up increases the use of inputs at each point in time. On the other hand, gas has input saving bias, which indicates that technological changes in the industrial sector led to relative decrease in the use of gas over time due to improved input utilization efficiency. Higher efficiency is because of a change in the production technique towards more energy saving production technique in some industries. In terms of aggregate inputs, there is capital-using bias in all the nine industries and four industries (non-metal, basic metal food and beverages and other) show labour using while the remaining industries are labour saving. However, non-metal, basic metal, fabricated metal, chemicals, textile and other manufacturing sectors show energy using biases. This implies that with constant relative fuel prices, the value shares of energy increases over time. The study shows that there is energy substitution possibility in the industrial sector of the Nigerian economy. It can thus be inferred from the study that there is a potential for price incentive mechanisms to induce fuel switch from dominant petroleum to other alternative energy resources like gas, electricity and coal. The elasticities estimated can be used to determine the amount of tax needed to meet the reduction in oil consumption and hence meet the energy demand management objective. However, the low responses in some industries could be an indication that mere price based policies to encourage energy conservation might not be optimal in these industries. An alternative policy is a change of technology specific policies directed towards investment into improvement in technical efficiency and acquisition of specific improved technologies. These could provide capital accumulation and additional incentives towards the reduction in petroleum products (oil) consumption and be able to achieve the objective of energy conservation, thereby achieving the aim of carbon mitigation. Agricultural Economics, Extension and Rural Development Restricted Natural and Agricultural Sciences 2013-09-09T08:02:03Z 2008-08-07 2013-09-09T08:02:03Z 2008-04-15 2006-05 2008-07-23 Thesis Adeyemo, OO 2008, Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach, PhD thesis, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07232008-165224 / > D478/gm http://hdl.handle.net/2263/31036 http://upetd.up.ac.za/thesis/available/etd-07232008-165224/ en © 2008, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria application/pdf University of Pretoria
spellingShingle UCTD
Translog cost function
Nigeria
Elasticity
Energy
Greenhouse gas (GHG)
Econometrics
Duality theory
Substitution
Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach
title Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach
title_full Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach
title_fullStr Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach
title_full_unstemmed Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach
title_short Substitution in demand for energy and implications for mitigation of carbon emissions in Nigeria : an econometric approach
title_sort substitution in demand for energy and implications for mitigation of carbon emissions in nigeria an econometric approach
topic UCTD
Translog cost function
Nigeria
Elasticity
Energy
Greenhouse gas (GHG)
Econometrics
Duality theory
Substitution
url http://hdl.handle.net/2263/31036
http://upetd.up.ac.za/thesis/available/etd-07232008-165224/